NEWARK, N.J. (AP) — An investment fund manager from Philadelphia who orchestrated a $100 million securities fraud scheme has been sentenced to more than nine years in prison, according to federal prosecutors in New Jersey.
Brenda Smith, 61, must also pay $47.2 million in restitution. She had pleaded guilty last September to a securities fraud count.
Prosecutors said Smith operated the scheme from February 2016 through August 2019, using her investment fund, Broad Reach Capital. They say she lied to investors about the fund’s assets and performance.
Smith collected more than $100 million in investments, prosecutors said, but instead of investing the money as promised, she diverted millions for other purposes, including paying other investors.
Smith received a 109-month sentence on Wednesday. She will also have to serve three years of supervised release once she’s freed